What are the negative impacts of New Economic Policy?

The poor unskilled labour forces continue to work in low-productivity jobs drawing low irregular wages. 2. Neglect of Agriculture : During the reform period agriculture sector has been neglected. The growth of agriculture sector has declined whereas the growth of service sector has gone up.

What are the impacts of New Economic Policy 1991?

The New Economic Policy of 1991 included standard structural adjustment measures including the devaluation of the rupee, increase in interest rates, reduction in public investment and expenditure, reduction in public sector food and fertilizer subsidies, increase in imports and foreign investment in capital-intensive …

What are the criticism of economics reforms 1991?

5. Another point of criticism raised by the critics against the policy reforms is that the new economic reforms are a complete surrender to the World Bank-IMF precepts and the Government has surrendered its sovereignty in order to procure a huge amount of loan from such international agencies.

Which of the following is a major disadvantage NEP 1991?

Some of the major weaknesses of New Economic Policy are: Large dependence on foreign investment in several sectors of economy. The rate of Consumer Price Index (CPI) has increased over the years. Inadequate privatization due to strong resistance from labor unions.

How has the New Economic Policy 1991 affected the lifestyle and life changed in new middle class in India?

India’s economic liberalization in 1991 promised the creation of a robust middle class. Unlike China, however, which moved more than half of its households out of poverty to annual income levels above $10,000, India has been able to shift fewer than 20\% of its households over this mark.

What are the consequences of unemployment?

Effects of Unemployment Individual: people who are unemployed cannot earn money to meet their financial obligations. Unemployment can lead to homelessness, illness, and mental stress. It can also cause underemployment where workers take on jobs that are below their skill level.

What are the limitations of economic reforms?

The limitation of the economic reforms are . They are non – beneficial something. They need a good time to focus by people. They are probably type of calculation that people need to do on certain times.

Which of the following sectors was not much affected by the reforms after 1991?

The reforms were largely in the formal sector of the economy, the agriculture, urban informal sector and forest dependent communities did not see any reforms.

What is the negative impact of industrial policy 1991?

Pre 1991 industrial policy the public sector witnessed a number of bottlenecks namely insufficient growth productivity, bad management, there was no technological up gradation and not much attention was given to R&D department. Also this sector saw low returns on the capital invested.